The only CO₂ utilisation pathway that provides both product revenue and permanent geological storage.
CO₂-EOR is unique among CO₂ utilisation pathways in that it simultaneously generates revenue (from incremental oil production) and provides permanent geological CO₂ storage (in the reservoir). Typically 50–67% of injected CO₂ is permanently retained in the reservoir — the remainder is produced with the oil, separated, and re-injected in a closed loop. This means CO₂-EOR is not just a utilisation pathway but also a permanent storage mechanism, making it the only CCU option that satisfies both storage and utilisation criteria simultaneously.
The commercial model for CO₂-EOR is built on the oil production revenue from the incremental barrels recovered by CO₂ injection. In the US Permian Basin — the world's largest CO₂-EOR province — operators typically recover 10–20% additional oil from reservoirs already produced by primary and secondary recovery (waterflood). At USD 70–80 per barrel of oil, this incremental production generates substantial revenue that can fully offset the cost of CO₂ capture, compression, pipeline transport, and injection. The net cost of carbon storage in CO₂-EOR operations can therefore approach zero — or even become negative if oil revenue exceeds all CCUS costs.
For India, the economic case for CO₂-EOR is strongest in Gujarat and Rajasthan, where ONGC and Cairn/Vedanta operate mature sandstone reservoirs with significant residual oil saturation and proximity to industrial CO₂ sources. NCM's preliminary EOR screening assessments indicate that several Gujarat onshore fields meet the basic screening criteria for miscible CO₂-EOR: reservoir depth above 800m (CO₂ supercritical), oil gravity above 25° API, and minimum miscibility pressure below 150 bar. These fields collectively represent hundreds of millions of barrels of incremental recovery potential.
CO₂ permanently retained in reservoir in EOR operations — the rest is recycled, not emitted
Typical incremental oil recovery factor from CO₂-EOR versus waterflood alone
Net cost of CO₂ storage when oil revenue fully offsets CCUS capital and operating costs
CO₂ used annually in the US Permian Basin CO₂-EOR operations — the commercial proof of concept
NCM has assessed India's mature field portfolio against CO₂-EOR screening criteria — identifying the highest-priority candidate fields and the CO₂ supply routes that make each viable.
ONGC's Gujarat onshore fields are NCM's highest-priority CO₂-EOR candidates. Sandstone reservoirs at appropriate depth and API gravity. Industrial CO₂ sources at ONGC Hazira, GNFC Bharuch, and Gujarat State Fertilizers within pipeline range. Preliminary screening indicates positive EOR economics at USD 65+ oil price.
Cairn/Vedanta's Rajasthan fields. India's largest onshore oil producers. Heavy oil (20–22° API) presents miscibility pressure challenges — CO₂-EOR viability depends on reservoir pressure management. Remote location increases CO₂ transport cost. NCM preliminary assessment: marginal at current oil prices, viable with carbon credit revenue.
ONGC's Mumbai High carbonate reservoir. CO₂-EOR in carbonates follows different displacement physics than sandstone. International carbonate EOR data (Permian Basin Queen Formation, Weyburn carbonate intervals) suggests moderate recovery increments. Offshore logistics increase cost significantly. Long-term strategic opportunity.
ONGC's Assam onshore fields. Sandstone reservoirs. Remote from major industrial CO₂ sources — CO₂ transport is the primary constraint. Northeast India's refinery and gas processing sector provides limited local CO₂ supply. Lower priority than Gujarat but strategically relevant for Assam state energy policy.
The first and most straightforward commercial structure is integrated CCUS + EOR by a single operator — where ONGC or Cairn/Vedanta captures CO₂ from their own captive industrial plant (typically a power plant or gas processing unit within the field complex), injects it for EOR, and retains both the oil revenue and the carbon credit revenue. This structure requires the operator to have both CO₂ capture infrastructure and oil production operations in the same complex, which limits its applicability but avoids multi-party commercial complexity. ONGC's Gujarat operations are the primary candidate.
The second structure involves a CO₂ supply agreement between an industrial emitter (the CO₂ seller) and an oil company (the CO₂ buyer and EOR operator). The industrial emitter captures CO₂ from its flue gas and sells it at a negotiated price (typically USD 20–40/tonne) to the oil company, which transports, injects, and uses it for EOR. The oil company retains the oil revenue; the emitter retains the carbon credit revenue from the CO₂ captured and stored. This structure is analogous to the US Permian Basin's commercial model, where CO₂ is traded in long-term supply agreements between capture plants and EOR operators.
The third structure — and potentially the most impactful for India — is a consortium model involving multiple industrial emitters, a CO₂ pipeline infrastructure developer, and ONGC or a private oil company as the EOR operator. Multiple emitters contribute CO₂ to a shared pipeline that delivers to the EOR field at scale sufficient to mobilise significant incremental oil production. This cluster model reduces the per-tonne infrastructure cost and creates a commercial structure that DFI lenders can finance as an integrated system. NCM is developing the consortium framework for a Hazira-Bharuch-Ankleshwar CO₂-EOR cluster in Gujarat.
NCM's CO₂-EOR advisory integrates four specialist disciplines: reservoir engineering (EOR screening, miscibility assessment, reservoir simulation, and production forecasting); CO₂ supply chain engineering (capture technology, compression, pipeline design, and CO₂ quality specification); commercial and legal structuring (CO₂ supply agreements, EOR joint venture frameworks, DGH regulatory navigation, and carbon credit structuring); and finance advisory (project finance structuring, DFI engagement, and oil price hedging strategy).
The reservoir engineering work is foundational — because CO₂-EOR project economics are highly sensitive to the reservoir's response to CO₂ injection, which varies considerably between fields and is difficult to predict without high-quality reservoir simulation. NCM's reservoir team uses compositional simulation models (Eclipse 300 / CMG GEM) calibrated against international CO₂-EOR performance data to generate production forecasts that lenders and investors can rely on.
Carbon credit monetisation is an increasingly important element of CO₂-EOR project economics in India. The permanently stored fraction of injected CO₂ (50–67%) qualifies for geological storage credits under India's Carbon Market framework and potentially under voluntary carbon market standards (Verra VCS, Gold Standard). NCM designs the monitoring, verification, and reporting (MVR) system for each EOR project to satisfy carbon registry requirements for credit issuance — creating a carbon credit revenue stream that improves project economics and can be used to attract climate finance alongside conventional project finance.
Whether you are a government body seeking policy advice, an industrial company facing CBAM exposure, or an investor seeking CCUS project opportunities — our team is ready to engage.